a comprehensive and flexible system for achieving, sustaining and maximizing business success. SIx Sigma is uniquely driven by close understanding of customer needs, disciplined use of facts, data, and statistical analysis, and diligent attention to managing, improving and reinventing business processes.

If there is too much variation in the process, use?
If there is too much waste, use?

DMAIC

Lean

Six Sigma projects generally follow a well defined process consisting of five phases?

1. Define

2. Measure

3. Analyze

4. Improve

5. Control

Define Phase of Six Sigma Improvement Process?

Define:

-goals for process improvement

-the customer

-project scope

-the problem/opportunity

Measure phase of the Six Sigma DMAIC Improvement Process?

-Identify appropriate performance measures

-Collect data

-Evaluate current process performance

Analyze phase of the DMAIC Improvement Process?

-Develop and test theories related to root causes of problems

-Identify cause and effect relationships

Improve phase of the DMAIC Improvement Process?

-Develop, evaluate, and implement solutions to reduce gap between desired process performance and current performance

Control phase of DMAIC Improvement Process?

-Monitor process to sustain improved performance

-Ensure that problems do not resurface

Six Sigma Tool used to manage an entire DMAIC project

Gantt Chart

Entire collection of tools/methodologies that can be used across all phases. (2)

1. Design for Six Sigma

2. Lean Tools

TOC (Theory of Constraints) is one of the Lean Tools.

Explain the Define Phase in detail

The define phase of a DMAIC project focuses on clearly specifying the problem or opportunity, what the goals are for the process improvement project, and what the scope of the project is. Identifying wo the customer is and their requirements is also critical given that the overarching goal for all Six Sigma projects is improving the organization's ability to meet the needs of its customers.

Two tools of the Define Phase?

1. Benchmarking

2. Quality Function Deployment (QFD)

What is Benchmarking?
(Define Phase)

-Benchmarking involves comparing an organizations processes with the best practices to be found. Benchmarking is used for: 1. comparing an organizations processes with the best organizations processes

2. comparing an organization's products and services with those of other organizations.

3. Identifying the best practices to emulate

4. Projecting trends in order to be able to respond proactively to future challenges and opportunities.

What is QFD?
(Define Phase)

Quality Function Deployment

Part of the Define Phase of DMAIC, QFD:

-Powerful tool for helping translate customer requirements into process capabilities that are customer desirable and fulfillable by the company.

Four Houses of Quality?
(QFD in the Define Phase)

1. Customer Requirements

2. Technical Requirements

3. Component Requirements

4. Process Deployment Requirements

Two commonly used process performance measures used in the Measure Phase?

1. Defects per Million Opportunities (DPMO) (3.4 DPMO)

Assumed the mean could shift +/- 1.5 std dev over time

2. Process Sigma

List three tools used in the Analyze Phase?

1. Brainstorming

2. Cause & Effect Diagrams

3. Process Capability Analysis

The Brainstorming Approach:
(Analyze Phase)

1. Do not criticize ideas druing the session

2. Express all ideas no matter how radical or unconventional

3. Generate as many ideas as possible

4. Combine, extend and/or improve on on another's ideas

Process Capability depends on?
(Analyze Phase)

1. Location of the process mean

2. Natural variability inherent in the process

3. Stability of the process

4. Product's design requirements

Six Sigma Training Levels

Master Black Belt

Black Belt

Green Belt

Alternative Process Design Flow Chart

What is forecasting?

The art and science of predicting future events

What is a forecast?

-An inference of what is likely to happen in the future

-Provides a basis for coordination of the plans of various functions (Finance: capital, Personnel:workforce, Purchasing: materials)

Types of Forecasts?

1. Technological

2. Economic

3. Demand

When to use Qualitative Forecasting Methods?

1. When data is not available

2. When data is not representative of the future (new products/techology)

Qualitative Forecasting Approaches?

1. Jury of Executive opinion

2. Sales Force

3. Delphi Method

4. Consumer Market Survey

Describe Jury of Executivew Opinion

A small group of managers in various functions may meet and collectively develop a forecast

Advantage: Considerable knowledge & talent

Risk: Bandwagon effect

Ex: Bristol Myers Squibb/Cancer treatment

Describe Delphi Method

Managers and staff complete a series of questionaires each developed from the previous one to achieve a consensus forecast.